Legal to avoid absd by purchase under third party?

The_Davis

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Say you pay money to some third party
Give him/her comm to hold pty for 3 years.
All costs incurred you pay

3 years later you flip
All profits you keep

Any legal issues here?
 

dareaper

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Say you pay money to some third party
Give him/her comm to hold pty for 3 years.
All costs incurred you pay

3 years later you flip
All profits you keep

Any legal issues here?
he or she can run away with your property, since the property is legally under his or her name?
 

dareaper

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i think the last loop hole in this absd policy is tenancy in common, but it doesn't solve the problem you are looking at. If there's other loop holes, please share with me :o
 

Rxgn

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If u dont trust that someone, then dont do it

Or pay full in cash under ur child name
 

Verghez

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Yeah that’s common, buy in trust to avoid absd. But if your child grow up sell and pocket the money, cannot kbkb.
 

Pokémon

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Say you pay money to some third party
Give him/her comm to hold pty for 3 years.
All costs incurred you pay

3 years later you flip
All profits you keep

Any legal issues here?
No legal issue.

Buy under mistress' name, good option.
 

Pokémon

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What if mistress sell and pocket the money?
Well, at least now you know where the issue lies isn't it...?

The main problem here is not about legality, but whether you are able to find anyone you could trust for this.

Even if you can trust this person now, it does not mean he/she would not betray you in the future for the sake of money or someone else.
 

Oftheseas

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Yeah that’s common, buy in trust to avoid absd. But if your child grow up sell and pocket the money, cannot kbkb.

I think your lawyer can advise you to do a revocable trust, so the power is still with you before child turn 21. I am not 100% sure on these matters.

But be mindful that the trust might hinder your child’s future plan for BTO or property purchase.
 

䏣炆玧示老太

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Say you pay money to some third party
Give him/her comm to hold pty for 3 years.
All costs incurred you pay

3 years later you flip
All profits you keep

Any legal issues here?
consult lawyer to draft such an agreement
 

japst3r

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Even if you get a lawyer to prepare a perfect trust document, it might not be enforceable because the objective is tax evasion and therefore illegal. Court generally will not help parties to enforce agreements that result in illegality.

Also, even if your perfect trust document is legally enforceable, you can be sure IRAS will come after you next for ABSD and charge you for tax evasion after that. So you win the civil case but still get in trouble with the regulator.

So no matter how you look at it, there's no way to "win" unless the person who takes the property in his/her name on your behalf is trustworthy. Law cannot help you out.
 

Tuckie

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Set up trust in ur kid’s name.
 

vinz

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Why keep talking about trust here?

If the person have the ability to pay up $1m or more for a pte property (since trust there is no loan and no cpf to be used), I don't see the point of him trying to escape Absd.

Just pay the tax and move on and make more money from whatever he is doing.

There is no legal way to bypass absd.

Only tons of not so good ideas trying to find loopholes in the system, hopefully anyone who tried those won't have regrets and bad result haunting them in the future.

Property price is at a peak now, why assume buying now to flip (like what the TS wanted) will ensure a profit 3yrs later? Nothing is guaranteed.

This thread shld be close.

-vinz
 

Laneige

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Say you pay money to some third party
Give him/her comm to hold pty for 3 years.
All costs incurred you pay

3 years later you flip
All profits you keep

Any legal issues here?
He run road with the property
 
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